SLIPIT Portfolio activity and new RCF facility

To:                        Company Announcements

Date:                     25 June 2019   

Company:              Standard Life Investments Property Income Trust Limited

LEI:                       549300HHFBWZRKC7RW84

Subject:            SLIPIT Portfolio activity and new RCF facility

Standard Life Investments Property Income Trust Limited (SLIPIT) has completed a major leasing transaction and small sale. At Bourne House in Staines (a 26,300sqft office) the Company took a surrender of the lease on the whole from the existing tenant, Ricoh, which had indicated it wanted to downsize, and which had a break in 2021. Simultaneously the property has been re-let on a new ten year term to a new tenant. The new lease is at a rent slightly higher than the previous rent passing, and provides the Company with a further 8 years income certainty. In addition, the Company has completed the sale of a small office in Milton Keynes for £6m. The sale realises a profit on the asset whilst reducing future capex and void risk, as it was expected the tenant would vacate on lease expiry in 2021.

The Company has also entered into a new arrangement with the Royal Bank of Scotland International Limited (RBSI) to extend its Revolving Credit Facility (RCF) by £20m. The Company currently has £18m undrawn from its existing facility, and has not drawn the new facility, which has an expiry coterminous with the existing debt provided by RBSI, in April 2023. The new facility has a margin of 160bps above Libor. The debt is available to enable the Company to take advantage of opportunities that might become available in the near future.

Jason Baggaley, Fund manager of SLIPIT commented: Both of the portfolio transactions continue our approach of reducing risk whilst realising a profit. We were particularly pleased to conclude the transaction on Staines as it was developed working with the tenant to realise a mutually beneficial outcome, and demonstrates the strengths of our asset management team. The additional facility has been taken on to provide flexibility for opportunities that we believe are going to become available. It will be utilised to acquire assets that meet the Company’s strategy of providing an attractive income return with prospects of income and capital growth.

All enquiries to:

Aberdeen Standard Investments
1 George Street
Edinburgh
EH2 2LL

Jason Baggaley  - Fund Manager
Tel: [phone]
E-mail: [e-mail]                              

Oli Lord - Deputy Fund Manager
Tel: [phone]
E-mail: [e-mail]

The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
PO Box 255, Trafalgar Court
Les Banques, St Peter Port
Guernsey GY1 3QL

Tel:         [phone]
Fax:        [phone]